MATALAN boss John King was named chief executive of House of Fraser last night after the department store chain changed hands in a é351m deal.

The Baugur-led consortium Highland Acquisitions announced that Mr King will join the company early next year as replacement for John Coleman, who stepped down as chief executive after completion of the takeover.

Mr King joined Skelmersdale-based Matalan in 2003 and has more than 20 years experience in retail and manufacturing. He is leaving Matalan weeks after John Hargreaves and his family agreed an é800m+ deal to take the company private.

He was appointed at House of Fraser along with chairman Don McCarthy, who set up the Shoe Studio Group in 1991.

Mr Coleman told staff: "It has been a privilege to lead House of Fraser since 1996 and I am proud of the business we have created as Britain's leading retailer of designer brands.

"Our success in doubling our profits over that period is down to the hard work, commitment and dedication of all of you and your colleagues around the business."

According to reports, Mr Coleman is set to receive at least é515,572 in compensation on top of a é1.7m payout from the vesting of long-term investment plan shares.

He will also get up to é4.7m in cash from shares he already owns.

Mr McCarthy replaces Michael Wemms as chairman. He also led the successful management buyout of the Shoe Studio from Nine West in 2001.

Baugur's acquisition of Kendals and Rackhams owner House of Fraser is its biggest in the UK to date and takes the turnover of companies in which it is a major shareholder towards é10bn.

It follows the takeover of clothing chains Whistles and Karen Millen along with tea and coffee maker Whittard of Chelsea. Baugur's empire also includes royal jeweller Mappin & Webb, Hamleys and food retailers Iceland and Booker.

Fraser began in 1941 as the drapery business Fraser, Sons & Co in Glasgow.

During the 1970s it expanded rapidly with the acquisitions of drapers across Scotland, Ireland and England and department stores such as Hide & Co in Kingston-upon-Thames and Army & Navy Stores in London.